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State policy makers in the US are reviewing past decisions to promote competition in electricity markets and, in some cases, are debating whether to reverse course. This paper for the COMPETE Coalition—which represents electricity customers, retail suppliers, power marketers, and generators—presents an objective review of both traditional regulation and competitive electricity markets in order to assist policymakers as they critically assess their policy options. In a foreword, Dr. Alfred Kahn describes the current sentiment to return to regulation as a reaction to transient developments—in particular, the sharp increase in oil and gas prices—and goes on to explain that the choice of system should not be based, opportunistically, on transient events.